Retailers turning to clicks-and-bricks strategy to find new customers

For Canadian retailers, sky-high rent prices and the rise of online shopping have often meant closing down their bricks-and-mortar locations. The evidence is everywhere — Sears and the World’s Biggest Bookstore in Toronto officially closed their stores this winter, while Chapters Indigo announced it will close one of its largest locations in downtown Toronto at the end of May.

But while permanent retail space is prohibitive, setting up shop temporarily is increasingly becoming a way for large brands and small businesses to find new customers.

The pop-up shop trend gained steam with large retailers in Canada in the past few years, starting with a Target pop-up shop in 2012 which promoted the Jason Wu designer capsule collection in advance of the retailer’s first Canadian store opening. Online retailers followed suit, looking for a way to draw in customers who would rather browse the racks offline. Ecommerce retailer Shop.ca opened a pop-up shop in Toronto over the recent holiday season and processed hundreds of thousands in transactions in less than a month, with founder Drew Green saying they did it to “combine clicks and bricks.”

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For entrepreneurs who sell their goods online, making the move offline through temporary pop-up shops and retail events can expose a new audience to their products. Shopify, for example, has held two “Popify” pop-up stores to highlight its online retailers and it just completed a week-long retail tour in Toronto, promoting its online store platform through workshops and events. Another online retailer turning to pop-up shops is Montreal-based Frank & Oak, a men’s wear retailer that opened a pop-up location in Toronto for a week in November.

There’s also a way to get space on the shelf without having to set up your own shop, as more large retailers look to launch pop-up shops in-store to showcase up-and-coming or artisan products. Holt Renfrew launched its H Project space in 2013 to highlight unique collaborations and global products. It launched the pop-up shop in larger stores across Canada and has since featured brands such as The Detox Market, an eco-friendly beauty brand with stores in Los Angeles and Toronto.

Chapters Indigo is also giving entrepreneurs space on its shelves through a partnership with Etsy, the popular online handcrafted marketplace. In early April Chapters launched a pop-up shop offering products from Etsy sellers such as Smells Like Canada, a candle shop that’s scents include “Calgary Rawhide” and “Cape Breton Clover.”

While not every online startup needs to go the pop-up shop route, it’s a great way to get exposure to a new base of potential customers. If you’re considering a temporary store, look for landlords who are willing to rent out for short periods, and use a tool such as TheStorefront.com to help locate available space in your city.

If you can’t find any official space or it’s too pricey consider using a community centre or other community spaces. And make sure your pop-up location is ready for the influx of customers — stock your inventory, get friends to help staff it, and use a payment solution such as Square so you can accept credit cards.